XRP on-chain data is displaying a concerning outlook. According to data shared today by market analyst Ali Martinez, active addresses on the XRPL Ledger have significantly dropped from a high of 55,080 noticed last week to the current low of 40,778.
The number of active addresses is a crucial indicator, typically pointing out the health of a blockchain network, and in this case, reflects the activity level of the XRP blockchain, a network commonly recognized as the XRPL Ledger.
This drastic fall of active addresses on the XRP chain warrants a closer exploration of what’s happening underneath the surface of XRPL network usage.
XRP Experiencing Rising Bearish Pressure
As per data shared by Ali, daily active addresses on the XRP blockchain have dropped by 25.97% to 40,778 from last week’s level at 55,080. This development is significant as it suggests that the price of the third-largest cryptocurrency is at risk of experiencing a potential fall.
Today, XRP witnessed an upside movement of 0.2%, making its price currently trade at $1.47, according to data sourced from CoinGecko. Furthermore, its price has been up 3.7% over the past week, indicating that buyers overpower sellers.
Despite this, the XRP Ledger recorded a reduction in on-chain activity last week, with a 25.97% drop in active wallet addresses. This decrease shows reduced user engagement on the network, meaning decreased user interest and a potential shift towards bearishness (greater selling activity).
XRP price has followed a consolidative trend during the week, remaining within a $1.3574 and $1.4827 range. The network activity has influenced this price movement, which is also impacted by the broader market conditions, as Bitcoin and Ethereum prices are currently stuck around $68,097 and $1,975 (at press time), indicating sideways trading in the larger cryptocurrency space.
Why XRP Price Eyes On $1.08
The analyst warns that the price of XRP may further fall soon. Key trends and technical signals on its market indicate that the altcoin’s price could drop to the $1.26 key support level.
Despite long-term investors absorbing the excess supply, which contributed to today’s 0.2% price rise and another 3.7% increased noted over the past week, persistent selling pressure is set to trigger XRP’s potential price drop, driven by substantial selling activity from whale token holders.
Technical analysis shows that XRP is currently moving within a bearish rising wedge pattern formation, reflecting a looming 24% drop to $1.08 if the asset fails to hold its price above the $1.26 support zone.
